SOUTHLAND

Blue Cross Charity Plan: On Thursday, Woodland Hills-based Blue Cross will submit to the state Department of Corporations its proposal on how more than $2 billion in public charitable funds will be distributed in California. Even before being formally submitted, the plan has drawn criticism. Consumers Union has called on department Commissioner Gary Mendoza to hold public hearings on Blue Cross’ plan and turn the funds over to an independent charitable foundation. The talks between the state and Blue Cross are the result of the insurer’s decision last year to turn over about 90% of its assets to create WellPoint Health Network, a for-profit managed-care subsidiary. The state said that Blue Cross, in exchange for the tax-exempt status it enjoyed for years as a nonprofit company, is obligated to compensate Californians by providing health care-related charitable funds in an amount equal to the value of its 80% ownership stake in WellPoint.